3 Hour NY SAFE: New York Mortgage Lending Laws

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This course is designed to prepare candidates to take the exam to become a state-licensed mortgage loan originator in New York under the New York Department of Financial Services (DFS). This 3-hour course covers New York-specific rules and regulations as mandated by DFS, and is required as part of the 20 hours of prelicensure education needed to become a New York-licensed mortgage loan originator.

This online self-study course will teach you about:

• New York licensing requirements.
• Fair lending concerns specific to New York.
• Guidelines and laws for special mortgage situations in New York.
• Disclosures, advertising laws, appraisals, and reporting requirements.

Topics and Learning Objectives

This course consists of three modules and a final exam:

1. High-Cost and Subprime Loans, Fair Lending, and Distressed Properties

2. Disclosures, Fees, Advertising, Appraisals, and Crime Reports

3. Licensing Requirements, Prohibited Conduct, and Department Disciplinary Actions

4. Final exam

Total study time: 3 credit hours

Module 1: High-Cost and Subprime Loans, Fair Lending, and Distressed Properties

This module will review special loan situations that require extra care and attention from any loan originator. These include high-cost and subprime loans, fair lending issues, distressed properties, and home equity theft prevention.

Module 2: Disclosures, Fees, Advertising, Appraisals, and Crime Reports

Module 2 will explore activities and material that are appropriate and required when engaging with prospective New York State mortgage customers, as required though New York State General Regulations Parts 38, 80, and 82, Sections 254-B and 254-D of New York State Real Property Law, and Part 300 of the New York State Superintendent’s Regulations. In proceeding with General Regulations Part, 38, it is important that we first clarify some definitions.

Module 3: Licensing Requirements, Prohibited Conduct, and Department Disciplinary Actions

Aside from working in the capacity of a mortgage lender for an exempt entity, anyone desiring to engage in mortgage origination activities by arranging for financing secured by one-to-four-family, residential dwellings located throughout New York State, must first secure a valid New York State Mortgage Loan Originator’s license.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID, but don't remember what it is:

• Login into NMLS,
• Click on the Composite View tab, then
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center